Microsoft to develop social gaming on Xbox 360

Microsoft are set to focus on the social gaming market in an attempt to boost sales of its Xbox 360 console. The plans to develop online communities through Xbox Live were announced in Los Angeles at E3 2008, the annual computer and video games industry trade show.

Microsoft spokesman Don Mattrick said that the software giant wanted to see the Xbox 360 "at the heart of the living room". He also said that the Xbox would outsell the PS3 in the near future with the games industry set to overtake both the music and film industries. Sadly the reported price cut for the Xbox 360 doesn't seem to be on the cards.

Yesterday Microsoft unveiled Xbox Live PrimeTime, which will allow users to play online quizzes produced in conjunction with TV company Endemol. John Schappert, the head of Xbox Live, described the move as "a new category of games for the whole family". The new direction for Xbox Live seems to be Microsoft's attempt to challenge the popularity of the Nintendo Wii.

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